The term for economic activity that involves exchanging goods and services is known as trade. Trade can occur on various scales, from local markets to international exchanges, and can involve both tangible items and intangible services. There are two main types of trade: domestic trade, which occurs within a country's borders, and international trade, where goods and services are exchanged across countries. Trade plays a crucial role in economic systems by allowing nations and businesses to specialize in certain products, which in turn can boost efficiency, increase variety for consumers, and foster economic growth.